Bonfiglioli takes 55% stake in gear-maker O&K for €25.7m

27 November, 2015

The Italian power transmission manufacturer Bonfiglioli Riduttori is acquiring a 55% stake in the German heavy-duty gear-maker O&K Antriebstechnik for €25.7m. O&K’s former sole owner, Italy’s Carraro Group, will retain a 45% share in the business and will have a strategic role as a key partner in the delivery of specific components.

The deal sees two historic Italian industrial families in the mechanical engieering sector joining forces. It will extend Bonfiglioli’s portfolio, allowing it to offer products for higher power applications, while the Carraro Group will be able to focus on developing innovative products – especially transmissions – for agricultural and construction equipment.

O&K designs and manufactures planetary gearboxes for high-power machines such as cranes, mining equipment, and marine and agricultural machinery.

Bonfiglioli’s chairman, Sonia Bonfiglioli, says that the deal is aimed at “completing our product range with applications on high-power machines such as earth-moving, construction and mining machines, as well as machines for the marine, port and airport sectors, thus extending the area of global leadership of Bonfiglioli in the transmission and power control field”.

Carraro’s chairman, Enrico Carrera, describes the agreement as “a great industrial story, which sees two Italian companies join forces in a real partnership approach with a view to mutual development”. He adds that the deal confirms “our desire to further focus on the core business of transmission systems, while forging a strategic alliance that will bring us benefits in the medium term”.

The transaction, which is subject to obtaining approval from antitrust authorities, is expected to close by the end of 2015. As part of the deal, O&K is expected to sign several commercial and service agreements with both Carraro and Bonfiglioli.